 How does top management team recomposition affect corporate trade credit financingShuai Xu, Suge Zhang and Chen Cheng International Review of Financial Analysis, 2025, vol. 102, issue C Abstract: We empirically examine the impact of top management team (TMT) recomposition on corporate trade credit financing. Utilizing a sample of A-share listed firms in China from 2009 to 2022, we discover that TMT recomposition exhibits a negative and significant correlation with corporate trade credit financing. Our finding remains robust after addressing endogeneity concerns and conducting rigorous tests for verification. This effect is particularly pronounced among firms with younger management teams and core executive turnover. Mechanism tests reveal that a restructured TMT may erode credit providers' trust by heightening operational risks and diminishing the quality of disclosed information. This underscores the importance of reducing operational risks and enhancing transparency in information as crucial pathways for securing trade credit financing. This study aids in comprehending the significance of a steadfast top management team and its internal mechanisms, offering clear implications for enhancing corporate trade credit financing. Keywords: Top management team recomposition; Corporate trade credit financing; Operating risk; Information disclose quality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:102:y:2025:i:c:s1057521925001954 DOI: 10.1016/j.irfa.2025.104108 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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